PART 5PENALTIES

CHAPTER 3PENALTIES FOR INACCURACIES

Potential lost revenue

135Potential lost revenue: normal rule

(1)

The “potential lost revenue” in respect of—

(a)

an inaccuracy in a document (including an inaccuracy attributable to a supply of false information or withholding of information), or

(b)

a failure to notify an under-assessment,

is the additional amount payable in respect of a F1WRA-collected tax F2or tax credit as a result of correcting the inaccuracy or under-assessment.

(2)

The reference in subsection (1) to the additional amount payable includes a reference to—

(a)

an amount payable to WRA having been erroneously paid by way of repayment of F1WRA-collected tax, F3...

(b)

an amount which would have been repayable by WRA had the inaccuracy or under-assessment not been corrected, F4and

(c)

an amount which WRA would have been required to set off against a person’s liability to tax, or to pay to a person, had the inaccuracy or under-assessment not been corrected.